The first ever summit for African Savings and Credit Cooperative Societies (SACCOs) and Cooperatives will be opening in the Kenyan capital Nairobi on 11th and 12th October 2012. The summit, whose aim is to determine ways for alternative financing, was initially scheduled to run between 14th and 15th of August 2012. SACCOs umbrella body Kenya Union of Savings and Credit Co-Operatives Ltd (KUSCCO) who are the part-organizers of the summit say the move is aimed at allowing more stakeholders to participate.
Speaking at an event where KUSCCO partnered with Alpex Consulting Africa Limited (ACAL), the event organizers, KUSCCO Managing Director George Ototo said the summit will come in handy for all SACCO members as liquidity problems have been troubling efficiency of many SACCOs in the country. Ototo said seeking alternative financing, governance and taxation issues will form key agenda at the summit.
There are 5,000 registered SACCOs out of the total 12,000 registered co-operatives in Kenya and the Summit seeks to bring together at least 1000 SACCOs from all over Africa. According to KUSCCO, the SACCO sector mobilizes about KES 250 billion in the country. With current high interest rates offered by the banking industry, Ototo says more people are joining SACCOs to access cheaper credit.
SACCOs lend to their members on savings basis where a member can borrow up to three times their savings at low interest rates of below 10% depending on the SACCO.